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M/s Krian Cinema Banquets Pvt Ltd vs The ACIT 10(1)(2), Mumbai

Case No: ITA No.4860/Mum/2025
Court: INCOME-TAX APPELLATE TRIBUNAL, MUMBAI BENCH ‘E’, MUMBAI
Date: 1/6/2026

Parties Involved

appellantM/s Krian Cinema Banquets Pvt Ltd
respondentThe ACIT 10(1)(2), Mumbai

Facts Summary

The assessee, M/s Krian Cinema Banquets Pvt Ltd, filed its return of income declaring a loss of Rs.52,81,310/-. The return was processed under section 143(1) of the Income-tax Act, 1961. The case was selected for scrutiny through CASS under the category of ‘Limited Scrutiny’ to verify the receipt of a large share premium during the year, specifically to examine the applicability of section 56(2)(viib) of the Act. The assessee issued shares to both resident and NRI subscribers and received share

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the Assessing Officer had the authority to make an addition under section 68 of the Act during a limited scrutiny?
  • 2. Whether the assessee complied with the statutory requirements to establish the genuineness of the share premium transactions?

Precedents Relied Upon

4 precedents cited in this judgement.

Judgment Outcome

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